Home >Companies >Nissan in talks to take control of Mitsubishi Motors: report

Seattle/Southfield, Michigan: Nissan Motor Co. may invest more than ¥200 billion ($1.84 billion) in a play to take over Mitsubishi Motors Corp., Japanese broadcaster NHK reported without identifying sources.

Mitsubishi, which admitted last month to cheating on fuel-economy ratings, said on Wednesday that nine more models including a sport utility vehicle may not have been properly tested as the scandal spreads beyond the initial batch of minicars.

Orders for Mitsubishi vehicles in Japan have plunged after the company first revealed it had overstated the fuel economy of its minicars by as much as 10%. The scandal has also affected Nissan, which sold two of the minicar models under a partnership agreement.

Mitsubishi Motors hasn’t sought support from Mitsubishi group companies and aims to solve the crisis on its own, chief executive officer Osamu Masuko said at a Wednesday press briefing in Tokyo. The company should be able to handle compensation with its own resources, he said.

Mitsubishi Motors shares have fallen 43% since 19 April, closing Wednesday in Tokyo at ¥495. Its US shares jumped 11% to $4.92 at 12:44pm New York time. Nissan’s American depositary receipts fell 1.5% to $18.30. Bloomberg

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